Saudi Arabia’s budget airline, flyadeal, is considering ordering between 10 and 20 wide-body jets to enhance its passenger capacity, with a decision anticipated by the end of the year. CEO Steven Greenway disclosed to Reuters that the low-cost subsidiary of Saudia, the state carrier, is in the preliminary phase of evaluating the Boeing 787 and Airbus A330neo. No formal competition between the manufacturers has been initiated yet.
This potential deal could be valued up to approximately $5 billion based on list prices, although airlines typically negotiate substantial discounts. Last month, the Saudia Group, which owns both Saudia and flyadeal, placed an order for 105 Airbus narrow-body aircraft.
Currently, Saudia operates both the Boeing 787 and the A330ceo, the predecessor to the A330neo, benefiting from updated engines. Greenway noted, “We have on our back doorstep an operator, in our owner, that has intimate knowledge of both aircraft, which is very helpful to us.”
The A350, Airbus’s latest wide-body jet competing with Boeing’s 787 and 777, is unlikely to be considered due to its extended range capabilities, which exceed flyadeal’s requirements. “The A350s are a great airplane, but they’re over-engineered for what we need,” Greenway remarked during the IATA airline association’s annual meeting in Dubai.
Greenway, who assumed the role of CEO in January and formerly served as a senior executive at Singapore Airlines subsidiary Scoot, indicated that flyadeal’s long-term plan envisions a fleet expansion. “We have mapped out a long term plan (in which) we could potentially have a fleet of 10, 15, 20 – I would say 10 minimum in the next three, four or five years,” he stated, referring to the wide-body aircraft study.
These larger aircraft, capable of seating up to 400 passengers in all-economy configurations, could be advantageous for high-demand routes, particularly in regions with slot constraints like Dubai. Greenway explained, “If we can’t get any more slots … then the only choice you’ve got beyond the (Airbus) A320 is getting a wide-body to operate the service.”
The recent narrow-body jets ordered by flyadeal can accommodate up to 240 passengers. Addressing concerns about budget airlines operating large aircraft, Greenway highlighted the differing market dynamics, noting, “The Atlantic market had unique competitive pressures while large planes were more routinely used to fly relatively short distances in Asia.”
Saudi Arabia’s aviation sector is undergoing significant growth as part of the kingdom’s Vision 2030 plan, which aims to diversify the economy from fossil fuels and enhance the private sector. This strategic move by flyadeal reflects the broader ambitions within the country’s aviation industry.